G.Sudhagar, v. The Authorised Officer,

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 22.06.2017

CORAM:

THE HONOURABLE MS.INDIRA BANERJEE, CHIEF JUSTICE AND THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAM W.P.[MD].Nos.11549 and 11550 of 2017 and W.M.P(MD).Nos.8889 and 8890 of 2017 G.Sudhagar : Petitioner in W.P.(MD).No.11549 of 2017 C.Mahalingam : Petitioner in W.P.(MD).No.11550 of 2017 Vs.

1. The Authorized Officer, Axis Bank RAC, ARCOT Plaza, Old No.38, New No.165, Arcot Road, Kodambakkam, Chennai.

2. The Regional Manager, Axis Bank, No.82, Aalim Centre Ground Floor, Doctor Radhakrishnan Salai, Mylapore, Chennai.

3. The Branch Manager, Axis Bank Raman & Raman Opp, Kumbakonam, Thanjavur District.

: Respondents in both WPs COMMON PRAYER: Writ Petitions are filed under Article 226 of the Constitution of India to issue a Writ of Certiorari to call for the records pertaining to the sale notice issued by the first respondent dated 26.05.2017 and quash the same. For Petitioners : Mr.V.Panner Selvam For Respondents : Mr.M.Senthilkumar COMMON ORDER ******************** [Order of the Court was made by T.S.SIVAGNANAM, J.] Heard Mr.V.Panner Selvam, learned counsel for the petitioners and Mr.M.Senthilkumar, learned counsel for the respondents. By consent, the Writ Petitions are taken up for final disposal at the stage of admission itself.

2. These Writ Petitions have been filed by two borrowers, who had availed loan from the respondent bank. The petitioners defaulted in the repayment of the loan resulting in initiation of proceedings under Section 13(2) of the Secutirization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, [for brevity, "the Act"]. It appears that the petitioners/borrowers wanted to settle the matter and therefore, the matter was referred to the Lok Adalat as a pre-litigation settlement case to explore the possibility of settlement. The petitioners agreed to repay the entire loan and the terms of the settlement were reduced into writing. The admitted case of the petitioners/borrowers is that they have not complied with the terms of settlement as agreed to before the Lok Adalat.

Therefore, the respondent bank has proceeded further under the provisions of the Act. As of now, notices have been issued, bringing the properties, which were mortgaged in favour of the respondent bank, for sale by public auction. In the above circumstances, the petitioners are now before this Court challenging the sale notices.

3. Under the provisions of the Act, the petitioners have an effective and efficacious alternative remedy before the Debts Recovery Tribunal and each measure initiated under the provisions of the Act, gives a cause of action for the aggrieved person to approach the Tribunal. Therefore, the petitioners are not justified in approaching this Court by way of these Writ Petitions and these Writ Petitions have to be rejected as not maintainable.

4. The learned counsel for the petitioners would submit that the lands are the agricultural lands and the provisions of the Act cannot be invoked. This being a question of fact has to be agitated before the Tribunal and not in a writ petition.

5. The learned counsel for the petitioners submits that the petitioners are desirous of settling the loan, though they failed to adhere to the terms of settlement as agreed to before the Lok Adalat in the pre-litigation settlement. If the plea is genuine, the petitioners have to approach the respondent bank by way of an appropriate proposal, which could be considered by the respondent bank, in terms of their Regulations.

6. Hence, for the above reasons, we are not inclined to interfere with the impugned notices issued by the respondent bank and while holding that the Writ Petitions are not maintainable, we dismiss the Writ Petitions, giving liberty to the petitioners to approach the Debts Recovery Tribunal or if they are genuinely interested in settling the loan, it is open to the petitioners to approach the respondent bank by way of appropriate proposal, which

shall be considered in accordance with law. No costs.

Consequently, connected Miscellaneous Petitions are closed. Sd/- Assistant Registrar (CS-I) /True copy/ Sub Assistant Registrar +1 CC to M/s.V.PANNER SELVAM, Advocate, SR No. 61923 +1 CC to M/s.V.PANNER SELVAM, Advocate, SR No. 61922 +1 CC to M/s.M.SENTHILKUMAR, Advocate, SR No. 62054 NB PSM/MR-KKR/SAR2/05.07.2017/3P/4C COMMON ORDER MADE IN W.P.[MD].Nos.11549 and 11550 of 2017 22.06.2017